Resurgence in Secondary Home Sales Hits Six-Week High in Hong Kong

Over the Dragon Boat Festival weekend, secondary home sales at Hong Kong's 10 major housing estates reached a six-week high. According to data from Midland Realty, these 10 blue-chip estates saw 11 transactions in the first two days, marking a 57 percent increase from the previous week and a return to double-digit sales figures. Similarly, Centaline Property Agency reported a 43 percent increase, with 10 transactions at these estates.

Louis Chan Wing-kit, Asia Pacific Vice Chairman of the residential division at Centaline Property, noted that the absence of new projects over the weekend shifted buyer focus to the resale market.

Despite this uptick, the broader sentiment remains cautious. Many potential buyers are in a wait-and-see mode, anticipating earlier interest rate cuts by the US following recent reductions in Canada and Europe. This cautious approach is expected to keep the number of resale transactions relatively low, according to Chan.

Sammy Po Siu-ming, Chief Executive for the residential division of Midland Realty for Hong Kong and Macau, emphasized that while there was a spike in resale activity, the primary market is likely to remain the focal point as more new projects are anticipated to meet ongoing demand. He also predicted continued volatility in the second-hand homes market.

In the primary market, significant developments were noted. Henderson Land Development's (0012) The Haddon in Hung Hom received 450 checks by 7:30 PM yesterday, with the 63 flats offered being more than six times oversubscribed. Meanwhile, Star Properties' After The Rain in Yuen Long is poised to increase prices after selling over 80 percent of its units.

Additionally, in Tuen Mun, the first phase of Grand Jete witnessed the sale of seven out of 28 flats on Sunday following substantial price reductions by CK Asset (1113) by as much as 28 percent. This indicates a robust demand response to price adjustments in the current market climate. 

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